Section 5(1)(j) in The U.P. Licences for the Possession of Denatured Spirit and Specially Denatured Spirit Rules, 1976
(j)The licensee shall be liable to pay a penalty at a rate equal to the prescribed rate of vend fee on denatured spirit per litre on storage wastage of denatured spirit exceeding 1.5 per cent, found on the last working day of every calendar month after verification of the stock by the Excise Inspector-in-charge.